Hancock Energy, led by Gina Rinehart, has signaled its readiness to begin construction on the $1.5 billion Belisama gas project in Western Australia within the coming months, pending final investment decisions. The company recently submitted works approval documents to the Department of Water and Environmental Regulation, indicating it could commence construction by the end of September. This follows the project’s main environmental approvals granted by the Environmental Protection Authority in June.

Belisama is an onshore gas development intended primarily to supply the Western Australian domestic market. Hancock Energy’s investment decision, however, remains contingent on the outcome of the federal government’s proposed domestic gas reservation scheme, which has introduced uncertainty among WA gas producers. Many producers in the state are already subject to a 15 percent reservation requirement.

The draft legislation for the national reservation scheme was released for public comment on September 1. It allows for up to 20 percent of gas production to be reserved for domestic use across Australia but suggests that existing WA state arrangements may continue, subject to ministerial discretion. Hancock Energy is expected to submit feedback on the draft legislation before the consultation period closes this week, seeking clarity on how certain elements of the scheme would be implemented.

While the draft legislation has alleviated some concerns, major energy producers Woodside and Chevron have expressed ongoing worries about the uncertainty created by ministerial discretion over reservation targets. The Western Australian Chamber of Minerals and Energy, which represents most of the state’s key gas producers, echoed these concerns. CEO Aaron Morey described the ministerial discretion as creating “a high degree of uncertainty” and advocated for WA’s exemption from the national scheme to be formally established in law. He also suggested that decision-makers should be required to consult with relevant state governments to improve certainty.

If approved for construction, the Belisama project could supply up to 210 terajoules of gas per day, meeting around 20 percent of WA’s domestic gas demand. This capacity could increase if Hancock Energy and ASX-listed Strike Energy agree to integrate Strike’s 50 percent share of gas from the West Erregulla field through the Belisama processing plant.

Hancock Energy also raised concerns about the impending 2030 expiration of a WA government concession that currently permits onshore producers to export up to 20 percent of their produced gas. The company estimates the main processing plant will cost approximately $850 million to build, with an additional $650 million expected for drilling, development, and pipeline infrastructure to connect the project to existing gas networks.

Hancock Energy acquired the Belisama project in 2024 in a $1.8 billion transaction with Mineral Resources, led by Chris Ellison. The deal included an $804 million upfront payment and $327 million in milestone payments tied to further exploration progress. The company aims to have gas flowing from Belisama by 2029, which is anticipated to help mitigate potential gas shortages in Western Australia in the early 2030s.